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Personal Finance
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Personal finance using Economics GPS Standards book
Flashcards
33 cards
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Practice quiz
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Questions
33
Answers
1
The amount of money borrowed.
Mutual funds
Principal
Bonds
Interest
2
Pool of money from a number of investors to buy a range of stocks.
Mutual Funds
Stocks
Risk
Return
3
Shares in a company that an individual or organization purchases giving them part ownership
Collateral
Stocks
Bonds
Mutual Funds
4
Brian wants to get a promotion at work. Which of the following is a step that can help him?
Kiss up to his boss
increase his capital investments
invest in additional training
better assess his opportunity costs
5
Refers to the chance an investment might actually end up losing money rather than making it
Bonds
Collateral
Risk
Return
6
Everyone pays a set percentage of their annual income.
Sales tax
Progressive tax
Regressive tax
Proportional tax
7
Which of the following is an important reason why people need financial investment plans?
to lower their credit score
to know where to purchase goods
to save for retirement
to gain simple rather than compound interest
8
Homer takes out a $40,000 loan, but he will only pay 5% interest on the $40,000 he borrowed.
mortgage
compound interest rate
simple interest rate
proportional tax
9
Which of the following loans would MOST LIKELY have the highest interest rate?
school loan
automobile loan
home mortgage loan
credit card
10
A sales tax is an example of this type of tax, bc people with less money pay a higher % in tax.
Regressive tax
Progressive tax
Sales tax
Proportional tax
11
When you use this you are simply using a card to access your own money.
credit
debit
checking
mortgage
12
Consumers use this bc their future income looks more promising than their current income.
debit
checking
credit
mortgage
13
Joe is told he will be fired if he doesn't start cooking properly. (Example of...)
List of Alternatives
Positive Incentive
Rational Decision
Negative Incentive
14
Joe is promised a 10% raise if he sells 80 pairs of shoes this month. This is an example of a
list of alternatives
Negative Incentive
Positive Incentive
Rational Decision
15
Having a college degree often results in
a lower discount rate
compound interest rates
a lower credit score
higher work earnings
16
Loans to either a company or the government
Mutual Funds
Bonds
Collateral
Stocks
17
Determining which choice comes closest to helping you get what is important to you is called
Negative Incentive
List of Alternatives
Rational Decision
Positive Incentive
18
Which of the following statements BEST defines consumer credit?
to get something free for nothing
to pay for goods with something other than cash
to buy goods without processing collateral
to pay for goods now for promise of payment in the future
19
Why are interest rates lower for people with collateral?
these people don't actually need the money
these people have shown they will not be collateral damage
these people are less of a risk bc of their assests
these people have shown they are responsible
20
When people make economic decisions whether consciously or unconsciously, it is called?
positive incentive
list of alternatives
negative incentive
Rational decision
21
Flat tax takes a fixed percentage of every payers income. Which type of tax BEST describes this
invasive
proportional
progressive
regressive
22
Which of the following would benefit MOST from compound interest?
someone applying for a home loan
a borrower with a high credit score
someone who needs a car loan
someone investing in an IRA
23
Refers to the eventual payoff of the investment.
Collateral
Return
Risk
Stocks
24
Agreement which a buyer receives goods at the present time in exchange for promise to pay later
Interest
Interest Rate
Debt
Credit
25
This tax is based off the percentage of the cost of the product.
Proportional Tax
Sales Tax
Regressive Tax
Progressive Tax
26
Your credit worthiness is determined LEAST by which of the following?
Credit score
Tax Rate
Collateral
Amount of debt
27
Joe takes out a $10,000 loan and has to pay 5% interest on both the principal and the accrued %
Simple Interest Rate
Proportional Tax
Compound Interest Rate
Progressive Tax
28
This insurance covers a much wider range of catastrophes
Liability
Comprehensive
Homeowner's
Medical
29
Which of the following might lower your credit score?
having worked at the same job for 3 years
never having "bounced" a check before
having paid all your bills on time
never having applied for credit before
30
Someone concerned they can't afford their medical bills if they were seriously injured should
consider not getting seriously injured
consider stocks that will likely perform well
consider health bonds
consider insurance
31
Tito owns a restaurant in downtown Atlanta. Tito would probably like it if
The Fed would buy bonds
Congress would raise taxes
there were a higher discount rate
The Fed would raise the reserve requirement
32
Which of the following is an investment which allows someone to transfer financial risk?
embargoes
insurance
entrepreneurship
capital
33
This insurance pays if you are held financially responsible for an accident.
Medical
Comprehensive
Liability
Homeowner's
